Department of Education Memo Challenges NCAA's NIL Revenue Sharing Plans Under Title IX

A new Department of Education fact sheet suggests NIL payments from schools must comply with Title IX, raising questions about proportionality and future legal implications.

The Department of Education's Office of Civil Rights issued a fact sheet stating NIL payments from schools are considered 'athletic financial assistance' under Title IX, requiring proportional distribution between male and female athletes.
The fact sheet is not legally binding and does not carry the force of law, as it bypassed formal rulemaking processes and public input required for enforceable regulations.
Current NCAA revenue-sharing plans, which allocate a significant portion of funds to male-dominated sports like football, may need to be restructured to avoid potential Title IX violations.
Third-party NIL collectives, which operate independently from schools, are not subject to Title IX requirements, a distinction that could influence future compensation strategies.
The incoming Trump administration may rescind or revise the guidance, adding further uncertainty to how Title IX will impact NIL payments and broader NCAA policies.